How EU punitive taxes on Chinese EVs is impacting sales of Porsche, Volkswagen in German

Admin l Friday, October 11, 2024

 

BAVARIA – German luxury carmaker Porsche land Volkswagen reported disappointing figures on Friday as weak demand in China and the renewal of several popular models hit sales.

Total deliveries in the first nine months of the year were 226,026 worldwide, a 7% drop.

Sales in the vital Chinese market fell by 29% in the first nine months of the year, which the company said was due to the difficult economic picture in China.

Porsche, a major brand in Germany’s Volkswagen Group, also sold 5% fewer vehicles in North America as customs delays hindered deliveries.

One bright spot was the company’s home market in Germany, where deliveries were up 8% in the first three quarters.

Elsewhere, sales increased by 1% in the rest of Europe, and by 3% in overseas markets, a broad category encompassing Africa, Latin America, Australia, Japan and Korea.

The downturn had been somewhat expected as the Stuttgart-based company redevelops its fleet, with updated versions of the Porsche Taycan electric sports car, the Panamera, Cayenne and Macan models and the classic 911.
The transitions between different model series are reportedly complex, leading to gaps in sales in individual markets.

Overall, however, sales director Detlev von Platen said customer demand remains robust, with good feedback on the new models.
“With increasing product availability, we are looking optimistically at the final stretch of 2024,” he said.

Volkswagen Group also reported drop in sales in the third quarter, with disappointing results at Audi and struggles in the Chinese market largely responsible.

Total sales decreased by 7.1% to 2,176,300, the Wolfsburg-based company said, after a 3.8% fall in the previous quarter.
The Audi brand saw a 16% slump in sales, while the core VW brand was down 6.6% and the Volkswagen Commercial Vehicles division sold 11.8% fewer vehicles.

Only the Skoda and Lamborghini subsidiaries, as well as the Traton truck manufacturer, saw sales increase.
Business was particularly slow in China, where Volkswagen reported a 15% drop in deliveries, with a 23.4% fall in the rest of Asia.

Growth in America, Africa and the Middle East, meanwhile, could not offset a 7% decline in deliveries in Western Europe.
Electric car sales also fell markedly in the third quarter, with only 189,400 models being sold worldwide, representing a 9.8% drop compared to the previous year.

The company’s order backlog for electric vehicles in Western Europe remained around 170,000.